For Remax, what is the consequence of failing to meet the Minimum Agent Count?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ment Date and during each month thereafter through the remainder of the Term. |
the Renewal Addendum to Franchise Agreement that you will execute in connection with this Agreement.
If you are renewing an existing RE/MAX franchise you agree to have the Minimum Agent Count set forth in
Only Sales Associates who have not been affiliated with the RE/MAX Network of real estate offices for at least 3 months prior to their affiliation with you will be counted towards the satisfaction of your Minimum Agent Count requirements set forth above.
Notwithstanding any failure by you to meet your Minimum Agent Count, you will not be excused from the payment of, and you agree to pay, all Monthly Ongoing Fees, Marketing Fund fees and contributions and Annual Dues as if you had met your Minimum Agent Count.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees are still obligated to pay all fees, even if they don't meet the Minimum Agent Count. Specifically, franchisees must continue to pay Monthly Ongoing Fees, Marketing Fund fees and contributions, and Annual Dues to Remax, LLC. This means that a franchisee's financial obligations to Remax remain unchanged regardless of their ability to recruit and maintain the required number of agents.
Furthermore, failing to meet the Minimum Agent Count can impact a franchisee's ability to renew their franchise agreement. To renew, a franchisee must comply with all terms and conditions of the agreement, including meeting the Minimum Agent Count throughout the term. If a franchisee fails to meet this requirement, it could jeopardize their opportunity to renew the franchise for an additional period.
In summary, while failing to meet the Minimum Agent Count does not excuse a Remax franchisee from ongoing fees, it can affect their ability to renew their franchise agreement. This underscores the importance of franchisees focusing on agent recruitment and retention to maintain compliance with the franchise agreement and secure their long-term business prospects with Remax.